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Spectris PLC on Tuesday said it agreed to buy Micromeritics Instrument Corp.
The London-based company is a supplier of high-tech instruments, test equipment and software for industrial applications.
Spectris will acquire Micromeritics for an upfront consideration of $630 million, which is to be followed by a deferred payment of up to $53 million based on agreed financial performance metrics in 2024 and 2025.
Micromeritics is a Georgia, US-based developer of analytical instrumentation for the physical characterisation of particles, powders, and porous materials across research, product development, and quality control.
The consideration represents a multiple of almost 14 times expected 2024 earnings before interest, tax, depreciation, and amortisation of $35 million, and run-rate cost synergies of $12 million.
Spectris said the acquisition will be funded by a combination of existing cash resources and new external debt.
The transaction is due to be completed in the third quarter which ends September 30.
Chief Executive Officer Andrew Heath said: ‘The acquisition of Micromeritics fits perfectly with our strategy to build world-class businesses compounding growth and generating strong value creation for our customers and shareholders. Micromeritics is a high-quality business with a strong track record of growth and innovation with excellent growth prospects.’
This latest acquisition follows the purchase of instrument maker SciAps Inc, a provider of handheld instruments and laser-based analysers, earlier this month.
Spectris shares were up 2.2% to 3,106.00 pence each in London on Monday morning.
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